OnlineMarketplaces

Understanding Online Marketplace shoppers in 2017

Delivery Matters

#DeliveryMatters

02

Delivery matters for UK online marketplacesWhy are we looking at online

marketplaces? Because their rise

has impacted the way retailers

sell and how shoppers buy

online. They’ve transformed the

relationship that shoppers have

to brands and changed the way

they buy. Choice and variety alone

have added a layer of complexity to

understanding what online shoppers

want and expect. As for retailers,

multi-channel ecommerce is now

the norm for those looking to

maximise or optimise their sales.

An intriguing insight from the

research is that marketplace

shoppers browse regularly – buying

almost twice a month on average.

They tend to buy from the two

major players in the UK – Amazon

and eBay. There are a number of

alternatives, each carving out unique

selling propositions to drive usage,

but shoppers still tend to purchase

from the big two.

Fulfi lment plays an important role in

these purchases. In their search for

good value for money, shoppers tell

us that delivery costs and options

are essential when deciding which

marketplace seller to buy from,

and how o� en they would use them.

If sellers get these wrong, shoppers

won’t hesitate to abandon their cart.

On the other hand, fulfi lment doesn’t

aff ect the choice of marketplace site.

Interestingly, when buying from an

online marketplace, trust in delivery

provider matters more for shoppers.

And the nation still trusts Royal Mail

more than any other delivery provider.

We hope our fi rst look at online

marketplace shoppers in the UK will

uncover valuable trends and insights

to help you take advantage of these

increasingly-popular platforms.

Nick LandonManaging Director of Royal Mail Parcels

Contents

Introduction

02 Introduction

03 Key online trends

04 Top trends in 2017 for UK online marketplaces

05 Marketplace shoppers

06 The mindset of a marketplace shopper

07 Hunting for things to buy

08 How do people visit marketplaces?

09 What marketplace shoppers snap up

10 Does usage match awareness?

11 Marketplace shopping – how o� en and how much?

13 Delivery matters

14 Delivery drives decision-making

15 Getting delivery charges right

16 Shoppers love local delivery

17 Returns aff ect ratings

18 Returns: marketplace sellers vs online retailers

19 So many lonely carts

20 Hitting the ‘buy’ button

21 Picky about delivery

22 Who gets the stamp of approval?

23 In summary

24 Key takeaways from our research

25 Royal Mail services

26 Services to suit your customers

28 About this research

29 We can help your business deliver

#DeliveryMatters

04

Key online trends

Top trends in 2017 forUK online marketplaces Our fi rst online marketplaces report identifi ed a number of

trends refl ecting shopper behaviour in 2017. Let’s take a look

at the most signifi cant.

Online marketplacesare popular The survey shows us that marketplace shoppers are regular shoppers, buying almost twice a month on average. Over the last three months, they’ve spent an average of £174 on marketplace purchases. We also see that male and female shoppers use marketplaces differently. The majority of shoppers are female, however, male shoppers spend a significantly larger amount (£201) than females (£153).

So, where are they spending? The survey reveals that shoppers use a range of marketplaces, but that a clear preference exists. Amazon and eBay are not only front-of-mind in terms of awareness, but are front-runners in terms of usage, with 82% and 70% respectively saying they had purchased from these sites in the last three months.

Expectations are highWhen marketplace shoppers choose a seller, fulfilment ranks amongst the top factors they consider, with the cost of delivery resonating with nine out of ten. It’s interesting to note that these fulfilment expectations don’t affect the choice of marketplace site. Meanwhile, delivery charges remain the most common reason for cart abandonment. Results show that two in five marketplace shoppers abandoned their basket due to what they thought were unreasonable delivery charges.

Trust Royal Mail to deliver Still the most trusted onlinedelivery provider, Royal Mail are also front-of-mind for marketplace deliveries, and have delivered almost two in five of shoppers’ last purchases.

Did you know?Over the last three months, shoppers have spent an average of £174 on

marketplace purchases.

#DeliveryMatters

06

Marketplace shoppers

The choice between online marketplaces is diverse, and shoppers

tell us that they use them for diff ering purposes. This highlights

two key drivers for sellers. Firstly, to better understand audiences

in order to satisfy their demands and expectations. Secondly,

the importance of identifying which marketplaces are best suited

for diff erent audiences and product ranges.

The mindset of amarketplace shopper

would use

Amazon

for the range

of items

available

65%

would visit Gumtree

to find

something

second-hand

39%

would use

eBay

for bargain

hunting

64%

would choose notonthe-

highstreet.

com for personalised items

45%

would opt for

Etsy to find

something

unique

42%

#DeliveryMatters

07 08

Marketplace shoppers

Technology used by marketplace shoppers closely mirrors that

used by all online shoppers. 86% use a laptop or desktop while

combined smartphone and tablet use is 43%.

It’s interesting to note that marketplace apps seem to be driving up

smartphone usage as the user experience becomes better, making

them more convenient to use on the move. In fact, shoppers now use

a smartphone or tablet more than a laptop or desktop for shopping

on Facebook and Etsy.

Hunting for things to buyThe journey towards fi nding an item usually begins with one of

two actions. Shoppers either use a search engine such as Google,

or head straight to the marketplace to have a rummage around.

For marketplace sellers, this highlights some vital considerations.

For general searches, the importance of search engine optimisation and

paid advertising (in particular Google shopping). For marketplace searches,

the importance of accurate product terms and descriptions.

58% of online marketplace shoppers used a search engine, and of those:

How do people visitmarketplaces?

also carried out their

research directly on the

online marketplace.

57%

43%86%

use a laptop or desktop use a smartphone or tablet

Did you know?Younger audiences are

behind the rise in mobile

shopping, attracted by the

convenience and ease-of-

use of marketplace apps

and mobile sites. They shop

on-the-go at work, while

travelling or in-store.

15%used image search

functionality

50%used Google Shopping (or something similar)

22%clicked on a

sponsored link

#DeliveryMatters

09 10

4%

Marketplace shoppers

What marketplaceshoppers snap up Clothes are the most commonly purchased item from online

marketplaces, closely followed by books. Overall, the popularity

of these categories mirror that of online retailers in general.

What are the most purchased items?

32% buy clothes

31% buy books

24% buy CDs/DVDs/records/video games

The report shows that marketplace shoppers are most likely to buy

books, music, personalised items (such as name-engraved jewellery)

and second-hand clothes from marketplace sellers – rather than from

general online retailers.

Items more likely to be bought through a marketplace seller than an online retailer

28% – books

25% – CDs/DVDs/records/video games

18% – personalised items

17% – second hand clothes

Does usage match awareness?If shoppers know about an online marketplace, does it mean

they’re likely to shop there? The report shows us that when it

comes to awareness versus usage, the diff erences within the

marketplace landscape are glaring. While knowledge of many

marketplaces is widespread, the big two – Amazon and eBay –

are where shoppers usually go to make their purchases.

Who do people know and use?

Table key People who know

of the marketplace

People who

know of and shop

on the marketplace

31%buy books

24%buy CDs/DVDs/

records/

video games

32%buy clothes

97% 97% 83% 67% 48% 41% 26%82% 70% 4% 4%7% 6%

#DeliveryMatters

11 12

Marketplace shoppers

Marketplace shopping – how often and how much?

Marketplace shopping – how often and how much?

On average per month, marketplace shoppers:

As a clear gauge of their popularity, the majority of Amazon and eBay shoppers purchase from these marketplaces monthly

• 80% of Amazon shoppers buy at least monthly

(with 17% doing so weekly)

• 76% of eBay shoppers purchase from the marketplace at least monthly

(with 16% doing so weekly)

Meanwhile, Facebook and ASOS have more polarised usage.

We see from the survey that a relatively large proportion of their users make purchases every week, but many others buy rarely.

Shopping frequency amongst those who have bought from these platforms:

Make two purchases Spend £58

£58A helping handClick & Drop, launched at

the beginning of 2015, is

an online postage solution

designed to simplify

parcel shipping for online

marketplace sellers using

Royal Mail. See more

on page 28.

Percentage who shop weekly Percentage who shop monthly Percentage who shop less o� en

Table key

28% 34% 38%32% 24% 45%

#DeliveryMatters

14

Delivery matters

Delivery drivesdecision-making The results of the survey show that delivery options are key when

shoppers choose between marketplace sellers. Interestingly,

they’re not so important when choosing which site to use.

As the fi gures below reveal, low prices are the main infl uencer

of marketplace choice, followed by the product range.

Key factors in choosing an online marketplace

76% – low price/deals

70% – range of products available

When it comes to delivery expectations for items purchased on online

marketplaces, we see that they’re significantly high. 75% of shoppers expect

delivery times to be the same when ordering from an online marketplace as

when they order from an online retailer.

Key factors in choosing an online marketplace over an online retailer

60% because they can find better deals

51% because they can find items they can’t find elsewhere

38% because there’s more variety of the item they’re looking for

choose an online

marketplace because

of low price/deals.

76%

Did you know?Marketplace shoppers

prioritise value for money

just like general online

shoppers do in our UK

Online Shoppers report.

#DeliveryMatters

15 16

Delivery matters

Shoppers love local deliveryWhen shoppers need to have purchases delivered to an

alternative location, nearly one in two choose a seller that off ers

delivery to a local Post Offi ce® or Enquiry Offi ce using a Local

Collect service. The convenience of Click & Collect services

means that two in fi ve marketplace shoppers have chosen to

use one. It’s worth noting that of these shoppers, home delivery

is still more popular.

If an online marketplace seller off ered the choice of free home

delivery or a free Click & Collect service, 62% would opt for

home delivery, while 29% would prefer free Click & Collect.

Getting delivery charges right When UK online marketplace shoppers consider which seller

to buy from, delivery costs and options are very important.

In their assessment, shoppers told us that the cost of delivery,

and transparency about these costs, are key. So much so,

that they feature as two of the top three factors in choosing

a specifi c seller.

When buying from marketplaces, how important are the following factors?

Given that fulfilment is a driving force behind the choice of seller, it is

imperative that online marketplace sellers use delivery options strategically.

To do so can be a point of differentiation from competitors within this space.

62% 29%

prefer free

home delivery

prefer free

Click & Collect

Did you know?Online marketplace

shoppers are particularly

savvy. If they’re not offered

value, they’ll go elsewhere.

Expert adviceEven if home is the most

popular delivery location,

Click & Collect offers a

convenient and flexible

alternative, and should

be offered by ‘pure player’

marketplace sellers as part

of their delivery options.

A helping handRoyal Mail Local Collect® provides the largest retail network of collection

points. See page 28.

a driving force bbehehinindd ththe choice of seller

89%transparent information

about delivery charges

92%detailed product

description

90%cost of delivery

#DeliveryMatters

17 18

Delivery matters

Returns: online marketplacesellers vs online retailers

Returns affect ratings

For shoppers, the returns process is equally important whether

buying through an online marketplace seller or online retailer.

78% expect the returns process with an online marketplace

seller to be similar or easier than with online retailers.

Shoppers also accept that there are risks associated with

purchasing from marketplaces. This makes them either more

or less likely to return items.

Those shoppers more likely to

return items believe purchases from

online marketplaces are riskier than

from online retailers.

Those less likely to return an item

bought from an online marketplace

say they expect a seller’s returns

procedure to be less clear.

While a relatively small number of marketplace shoppers actually

return items, it’s clear that having a positive and easy returns

experience helps infl uence consumers.

• 16% of marketplace shoppers have returned an item in the past

three months

• 59% say the returns experience will impact the rating given to the seller

• 62% would be unlikely to shop with a seller again after a difficult

returns experience

What’s getting sent back?

While online marketplace shoppers return items from a range of categories,

two really stand out: clothes and footwear. expect the returns process

with an online marketplace

seller to be similar or easier

than with online retailers.

22%

9%have returned clothes

have returned

footwear

Did you know?The easier it is for

shoppers to return an item,

the more likely they are

to trust the seller and buy

from them again.

(Unlike online retailers),

sometimes online marketplace

sellers do not give honest

descriptions of their goods.

Sometimes it’s not worth the hassle

for the low price charged.

78%

#DeliveryMatters

19 20

Delivery matters

So many lonely carts93% of UK online marketplace shoppers have abandoned a cart

at checkout. The most common reason for doing so is that the

customer is unwilling to pay the delivery cost.

How often do shoppers abandon online marketplace carts?

Hitting the ‘buy’ button Shoppers were asked what would make them choose a

marketplace seller more o� en. Around half told us that price

and delivery factors would encourage them to bump up their

buying frequency.

Key reasons that make shoppers hit ‘buy’ more

38%

55%if the seller offers

the lowest price

48%if the seller has

free delivery

on all items

43%if the seller has a

free returns policy

Did you know?38% abandon their cart

because they are unhappy

with the delivery charge.

Did you know?Offering good value

delivery can help reduce

cart abandonment and

increase repeat business.

do so frequently do so infrequently have never done so

28% 65% 7%

#DeliveryMatters

21 22

The importance of trust

Picky about deliveryWe asked shoppers whether the choice of delivery provider is

more or less important when buying from an online marketplace

seller compared with a regular online retailer. Their answers

show that the choice of delivery provider is crucial:

Who gets the stamp of approval?The report shows that Royal Mail has the highest brand

awareness amongst delivery companies, and they delivered

almost two in fi ve of shoppers’ most recent online

marketplace purchases.

In addition, 43% of marketplace shoppers say the choice of delivery provider

is important to them.

And in a clear opportunity for increased sales, 77% are more likely to choose

a seller using Royal Mail for deliveries.

92% 38%

Royal Mail

brand awareness

Royal Mail delivered

last purchase

52%

13%consider it more

important

consider it less

important

of marketplace shoppers

are more likely to choose

a seller using Royal Mail

for deliveries.

77%

Did you know?More than three in four

consumers are more likely

to shop with a marketplace

seller if Royal Mail is the

delivery provider.

Expert adviceBeing offered a trusted,

reliable delivery provider

seems to be crucial in

helping online shoppers to

build trust with a particular

marketplace seller.

#DeliveryMatters

24

Key takeaways from our researchUnderstand marketplace purchase motivations

Shoppers like to visit online marketplaces for different reasons. It’s vital

that sellers understand these so they can satisfy demands and expectations.

For example, eBay attracts more bargain hunters while Etsy is used to find

something unique.

Deliver on expectations

In the competitive environment of UK online marketplaces, satisfying shopper

expectations is vital for sellers. They should start by minimising delivery

charges, as these are a key reason for shoppers abandoning their cart.

Trust is a must

Shoppers accept that marketplaces are riskier to purchase from than online

retailers in general. To help instill trust and attract business, sellers should

provide a choice of delivery options and offer delivery with a trusted provider.

One of those should be Royal Mail, which is the most trusted marketplace

delivery provider in the UK.

In summary

#DeliveryMatters

26

Services to suit your customers Royal Mail Special Delivery Guaranteed by 9am or by 1pm

Guaranteed next day timed delivery

for urgent or valuable items.

Full tracking, compensation and

proof of delivery with the option

to request Saturday delivery for

an additional fee.

The by 9am service provides £50

inclusive compensation and the

by 1pm service provides £750

inclusive compensation. This can

be enhanced up to £2,500 and

consequential loss coverage

of up to £10,000 is available too.

Royal Mail Tracked 24® and Tracked 48

Tracked delivery allows your

customers to self-serve for

extra peace of mind.

You can now track your parcels from

the point that they are despatched

through to delivery at your customer’s

doorstep with Royal Mail Tracked 24®

and Royal Mail Tracked 48®.

Your customers will receive a text

or email notifi cation on the day of

delivery, so they’ll know their parcel

is on its way.

You can opt for a signature on

delivery and all tracked products

provide up to £100 compensation

as standard.

Local Collect® is also included at

no additional cost with Royal Mail

Tracked services.

Royal Mail 24® and 48

A cost-eff ective delivery service

with large volume discounts.

Great everyday value on next day

or two-day parcel delivery.

Online Delivery Confi rmation is

now available for customers who

have barcoded their parcels.

Royal Mail services

#DeliveryMatters

27 28

Royal Mail services

Services to suit your customers Royal Mail Returns

With 11,500 Post Offi ce® branches to

choose from, it’s easy for customers

to return their items with Royal Mail.

Next day by 1pm with Special Delivery

Guaranteed Returns or Tracked next

day or two-day returns.

Royal Mail Tracked Returns off er up

to £100 compensation as standard.

Off er your customers free returns

by including a unique barcoded

returns label in every parcel, or by

letting them print their own label

from our online returns portal.

Royal Mail Local Collect

Perfect for customers wanting to collect

their deliveries when it suits them.

With Local Collect® they can choose to

pick up their items at a convenient local

Post Offi ce® or Royal Mail Customer

Service Point (Enquiry Offi ce).

This service is available for

Special Delivery Guaranteed by 9am

and Special Delivery Guaranteed

by 1pm, Royal Mail Tracked 24®

and Royal Mail Tracked 48®.

Click & Drop

Click & Drop is our quick and

easy shipping platform. Designed

for marketplace sellers, it easily

integrates with eBay, Amazon

and many other key e-commerce

platforms. Simply log-in to the

web-based portal and print individual

or batches of barcoded labels of our

UK and international services.

About this researchIndependently conducted by Trinity McQueen, the research

was based on a sample group of 1,000 UK online marketplace

shoppers who had bought an item from an online marketplace

in the previous three months.

Shoppers completed a 19-minute survey, optimised for mobile

and tablet devices, between the 9th and 18th of May 2017.

87%

#DeliveryMatters

29 30

Royal Mail services

We can help your business deliverThanks for reading Delivery Matters for UK online marketplaces – we hope

you found it useful. If you’d like to fi nd out more about how we can help with

your deliveries, get in touch with your Royal Mail account manager,

or call us on 08457 950 950*.

If you’d like to fi nd out more about our research, or download the rest

of our series, visit royalmail.com/deliverymatters.

2017

2015

2016

* Calls may be recorded, monitored

and used for training and compliance

purposes. Calls cost 5p per minute

plus your telephone company’s

network access charge.

United KingdomU it dd Ki dd Online MarketplacesO lli M kk t llChinaChhi

IrelandI l d Returns USA Germany Australia FranceR tSwedenS d

Canada

Italy

Russia

India

Japan

USA G A li F

For more information on our products or services,

please call Business Sales on 08457 950 950.

Textphone users can dial direct on 03456 000 606

and we welcome Typetalk calls.

Calls may be recorded, monitored and used for training and compliance

purposes. Calls cost 5p per minute plus your telephone company’s

network access charge.

Royal Mail, the cruciform and all marks indicated with ® are registered

trademarks of Royal Mail Group Ltd. Delivery Matters 2017© Royal Mail

Group Ltd 2017. All rights reserved.